Cowen Bank to Hold Cryptocurrency for Institutions and Invest $2.5 million in Ripple CTO Company

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Cowen Bank to Hold Cryptocurrency for Institutions and Invest $2.5 million in Ripple CTO Company
Cowen Bank to Hold Cryptocurrency for Institutions and Invest $2.5 million in Ripple CTO Company

Cowen Inc., a well-known investment bank with a centuries-old history, has announced that it will offer “institutional” cryptocurrency custody services to hedge funds and asset management companies to help them store Bitcoin, XRP and other digital currencies as reported by Bloomberg.

In addition, the bank will invest $25 million in PolySign, Inc., a company co-founded by David Schwartz, Ripple’s chief technology officer (CTO).

Cowen Bank to Offers Cryptocurrency management services

Jeffrey Solomon, CEO of Cowen, said the demand for cryptocurrencies from institutions is high enough, so it is time to get into the cryptocurrency custody business.

He said the bank will help financial institutions start trading cryptocurrencies in the near future.

The demand is coming from the soaring cryptocurrency prices of Bitcoin, Ethereum and other digital assets this year, as well as from big companies like MicroStrategy, Tesla, Top Hedge Funds and Goldman Sachs, which form a crypto trading group, and along with Morgan Stanley to the richest of people offering Bitcoin investments to customers.

Cowen Bank to Invest in Ripple CTO Company

The bank also plans to make a massive $25 million investment in PolySign, a company co-founded by David Schwartz, Ripple’s Chief Technology Officer (CTO) and led by CEO Jack McDonald.

The company produces products that financial institutions can use to deal with crypto assets.

The $ 25 million the bank provided is only half of the recently raised funds ($53 million). The list of investors includes Blockchain.com and Race Capital.